Canadian Chamber takes Trans Mountain support to the Hill

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On May 23, the Canadian Chamber will hold a day in support of the Trans Mountain Pipeline Expansion project on Parliament Hill. The day will consist of meetings with the three major federal political parties and a media event at the National Press Theatre.


The Chamber supports the $7.4 billion project which will allow Canada to get one of its most valuable natural resources to international markets, and allow Canadian companies to get a fair price for their product. The Trans Mountain Expansion will create thousands of jobs and generate millions of dollars in economic activity across the country.


Despite receiving the necessary regulatory approvals after undergoing a rigorous, scientifically sound, transparent, multi-year review process, the project is being blocked by the B.C. government. As a result, Kinder Morgan has halted all non-essential spending on the project and has given a deadline of May 31 for federal and provincial governments to provide assurances that the project can move forward without further delay. If the project does not proceed it will be economically disastrous for Canada, and will send a terrible signal to investors at home and abroad.


The Canadian Chamber’s Day of Support will show federal politicians that they have the support of thousands of Canadians, from communities across the country, to do what they need to ensure this project is built.


The activities planned for May 23 will include provincial and territorial chamber presidents, association heads, corporate leaders, union representatives and Indigenous leaders who will help the Chamber deliver an important message to federal politicians: the Trans Mountain project is in the national interest and it has the support of Canadians from coast to coast to coast. Now is the time to take concrete action to get it built.


You may think, “I’ve heard about this ... this is just a B.C. – Alberta fight”. Wrong.


While the Canadian Chambers are mobilizing in support of Kinder Morgan’s Trans Mountain Pipeline Expansion project, this fight has broader implications. If this project does not proceed, the intimation for investors across the country and around the world are, that even if you follow the rules and get your project approved, it may not proceed. That will discourage investment, hurt our economy and kill jobs.


As one of the world’s largest oil producers, the industry provides great benefits to Canada through taxes, jobs and investments in capital projects. Twinning the Trans Mountain Pipeline will inject over an estimated $7.4 billion into Canada’s economy through project spending and help our country export these resources by moving oil to the West Coast for marine transport to markets around the world. The Project will also lead to new jobs in the short and long term, job-related training opportunities and increases in taxes collected through all three levels of government.


By increasing Canada’s capacity to get resources to market, producers will see $73.5 billion in increased revenues over 20 years. Federal and provincial governments will see $46.7 billion in additional taxes and royalties from construction and 20 years of operation, higher producer revenues and additional tanker traffic.


The $7.4 billion pipeline project will increase the value of Canadian oil by unlocking access to world markets. A Conference Board of Canada report has determined the combined government revenue impact for construction and the first 20 years of expanded operations is $46.7 billion, including federal and provincial taxes that can be used for public services such as health care and education. British Columbia would receive $5.7 billion, Alberta $19.4 billion and the rest of Canada would share $21.6 billion.


Forecasted long-term economic benefits of municipal tax payments (not adjusted for inflation) total $922 million to B.C. and $124 million to Alberta over the first 20 years of expanded pipeline operations.


Along with the economic benefits provided by land access agreements and annual property tax payments throughout the lifetime of the pipeline, communities will also see financial contributions. These investments could help fund anything from improvements to local emergency management to enhancement of trails and parks, infrastructure improvements or support for local educational and training programs.


According to Conference Board of Canada estimates, the project would create the equivalent of 15,000 construction jobs and the equivalent of 37,000 direct, indirect and induced jobs per year of operations. Direct construction workforce spending in communities along the pipeline route is estimated to be $480 million.


So, this is not just about Alberta and B.C. but a far-reaching Canadian issue.


This week, the House of Commons is not sitting and many MPs will be back in their ridings. This is an opportunity to encourage your MP(s) to show their support for the Trans Mountain project and for the government’s efforts to get it built. This project is an important issue for communities across Canada. Meet with your MP this week and encourage them to advocate for this project.


- with files

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Posted on:
Friday, May 18, 2018